During 2020, businesses in Travis County collect $10,000,000 in sales taxes from customers. These taxes are remitted to the county. Sales taxes are shared between the county, the towns located within the county, and the state, with 50% retained by the county for general use, 30% transmitted to the state, and 20% distributed to the towns. By year-end 2020, the county had distributed $1,900,000 of sales taxes due to the towns and $2,900,000 of sales taxes due to the state.
Required
a. Identify the county funds used to record the above activities.
b. Prepare the journal entries to record the above activities in each fund. Clearly identify the fund in which each entry is made.

Question

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The Answer of During 2020, businesses in Travis County collect $10,000,000 in sales taxes from customers. These taxes are remitted to the county. Sales taxes are shared between the county, the towns located within the county, and the state, with 50% retained by the county for general use, 30% transmitted to the state, and 20% distributed to the towns. By year-end 2020, the county had distributed $1,900,000 of sales taxes due to the towns and $2,900,000 of sales taxes due to the state.
Required
a. Identify the county funds used to record the above activities.
b. Prepare the journal entries to record the above activities in each fund. Clearly identify the fund in which each entry is made.

During 2020, Businesses in Travis County Collect $10,000,000 in Sales